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1 | AN ACT to increase the availability and facilitate the | ||||||||||||||||||||||||||||
2 | delivery of venture
capital
to emerging and expanding | ||||||||||||||||||||||||||||
3 | enterprises in the State of Illinois.
| ||||||||||||||||||||||||||||
4 | Be it enacted by the People of the State of Illinois,
| ||||||||||||||||||||||||||||
5 | represented in the General Assembly:
| ||||||||||||||||||||||||||||
6 | Section 1. Short title. This Act may be cited as the | ||||||||||||||||||||||||||||
7 | Illinois Opportunity
Fund
Act.
| ||||||||||||||||||||||||||||
8 | Section 5. Findings and purposes.
| ||||||||||||||||||||||||||||
9 | (a) The State of Illinois finds that the traditional means | ||||||||||||||||||||||||||||
10 | by which venture
capital
and private equity investors direct | ||||||||||||||||||||||||||||
11 | capital to Illinois markets are
inadequately serving the
| ||||||||||||||||||||||||||||
12 | State's needs for
that capital and that the shortage is | ||||||||||||||||||||||||||||
13 | impairing the ability of the State to
create jobs, new
markets | ||||||||||||||||||||||||||||
14 | for goods and services, and sustainable economic growth | ||||||||||||||||||||||||||||
15 | throughout
Illinois.
The State of Illinois desires to | ||||||||||||||||||||||||||||
16 | strengthen the overall economy of the State by
increasing
the | ||||||||||||||||||||||||||||
17 | availability and delivery of venture capital for emerging and | ||||||||||||||||||||||||||||
18 | expanding
enterprises in
Illinois, and to do so in a way that | ||||||||||||||||||||||||||||
19 | provides for financial returns to private
investors.
| ||||||||||||||||||||||||||||
20 | (b) Furthermore, the State of Illinois finds that certain | ||||||||||||||||||||||||||||
21 | geographic areas
and
populations within the State have been | ||||||||||||||||||||||||||||
22 | subject to economic disparities and have
lacked
access to the | ||||||||||||||||||||||||||||
23 | private capital needed to create jobs and economic | ||||||||||||||||||||||||||||
24 | opportunities.
| ||||||||||||||||||||||||||||
25 | (c) Venture capital shall be directed to geographic areas | ||||||||||||||||||||||||||||
26 | and populations
within
the State that have been subject to | ||||||||||||||||||||||||||||
27 | economic disparities and have lacked access
to the
private | ||||||||||||||||||||||||||||
28 | capital needed to create jobs and economic opportunities, and | ||||||||||||||||||||||||||||
29 | to
sectors
considered to be strategic industries for the State | ||||||||||||||||||||||||||||
30 | of Illinois as determined
by the
Department of Commerce and | ||||||||||||||||||||||||||||
31 | Economic Opportunity in coordination with the entities
formed | ||||||||||||||||||||||||||||
32 | under this Act.
|
| |||||||
| |||||||
1 | (d) These investments are intended to create high-quality | ||||||
2 | and sustainable
employment opportunities for Illinoisans, | ||||||
3 | create domestic and global markets
for the
products and | ||||||
4 | services of funded enterprises, and help to strengthen the | ||||||
5 | State's
economic
base. This Act has the mission of mobilizing | ||||||
6 | private investment in a broad
variety of
venture capital funds | ||||||
7 | in diversified industries and geographic regions of the
State | ||||||
8 | of
Illinois. To achieve this mission, the General Assembly | ||||||
9 | believes that it is
important to
retain the private sector | ||||||
10 | culture of focusing on rate of return in the
investing process.
| ||||||
11 | Therefore, this Act is intended to facilitate the establishment | ||||||
12 | of the Illinois
Opportunity
Fund, seek private investment, and | ||||||
13 | create interest in these investments by
offering State
credit | ||||||
14 | enhancements that limit risk to private investors. This Act | ||||||
15 | also has the
mission of
facilitating and
enhancing the flow of | ||||||
16 | venture capital into the State of Illinois and improving
the
| ||||||
17 | infrastructure through which capital is delivered throughout | ||||||
18 | the State so as to
grow commerce in the State of Illinois. It | ||||||
19 | is the goal and intent of this
legislation to accomplish
these | ||||||
20 | missions in such a manner as to minimize any appropriations by | ||||||
21 | the State
of Illinois
to effectuate these purposes.
| ||||||
22 | Section 10. Definitions. In this Act, unless the context | ||||||
23 | requires otherwise:
| ||||||
24 | "DCEO" means Department of Commerce and Economic | ||||||
25 | Opportunity, or its
successor agency.
| ||||||
26 | "Certificate" means an assignable contract between DCEO | ||||||
27 | and an investor in
the
Illinois Opportunity Fund under which | ||||||
28 | the terms of the tax credits being issued
for the
benefit of | ||||||
29 | the investor, or any assignee of the investor, as established | ||||||
30 | by
DCEO, are
set forth.
| ||||||
31 | "Person" means an individual, a corporation, a | ||||||
32 | partnership, or any other
lawfully
organized entity, whether | ||||||
33 | domiciled in Illinois or outside of Illinois.
| ||||||
34 | "Illinois Capital Investment Corporation" means the | ||||||
35 | private not for profit
corporation established pursuant to this |
| |||||||
| |||||||
1 | Act.
| ||||||
2 | "Illinois Opportunity Fund" means the private for profit | ||||||
3 | fund established by
the
Illinois Capital Investment | ||||||
4 | Corporation pursuant to this Act.
| ||||||
5 | "Tax credits" means credits against taxes imposed pursuant | ||||||
6 | to Section 201 of
the
Illinois Income Tax Act for any taxable | ||||||
7 | year ending after December 31, 2009,
and
having such terms as | ||||||
8 | are established by DCEO in accordance with Section 25 of
this | ||||||
9 | Act,
including any contingencies on redemption.
| ||||||
10 | "SBIC" means small business investment company within the | ||||||
11 | meaning of the
federal Small Business Investment Act of 1958.
| ||||||
12 | "CDFI" and "CDVC." CDFI means a "community development | ||||||
13 | financial
institution" as defined in the Illinois Investment | ||||||
14 | and Development Authority
Act, and
CDVC means community | ||||||
15 | development venture capital, a type of CDFI specific to
| ||||||
16 | investing equity interests in Illinois firms with the dual goal | ||||||
17 | of financial
returns and
economic and social benefit.
| ||||||
18 | Section 15. Illinois Capital Investment Corporation.
| ||||||
19 | (a) DCEO shall create the Illinois Capital Investment | ||||||
20 | Corporation as a
private not
for profit corporation under the | ||||||
21 | General Not For Profit Corporation Act of 1986
and not
as a | ||||||
22 | public corporation or instrumentality of the State. The | ||||||
23 | corporation shall
not enjoy
any of the privileges nor be | ||||||
24 | required to comply with any of the requirements of
a State
| ||||||
25 | agency. Except as provided in this Act, nothing in this Act | ||||||
26 | exempts the
Illinois Capital
Investment Corporation from the | ||||||
27 | same requirements under State law that apply to
other
| ||||||
28 | corporations organized under the General Not For Profit | ||||||
29 | Corporation Act of
1986. The
Director or Acting Director of | ||||||
30 | DCEO or his or her designee shall be the
incorporator of
the | ||||||
31 | Illinois Capital Investment Corporation.
| ||||||
32 | (b) The Illinois Capital Investment Corporation shall | ||||||
33 | recommend and DCEO
shall approve investment objectives and | ||||||
34 | criteria for the Illinois
Opportunity Fund established to | ||||||
35 | provide financial returns to investors, create
jobs, and
|
| |||||||
| |||||||
1 | strengthen the economy of the State of Illinois. DCEO shall | ||||||
2 | supervise the
operations of
the Illinois Capital Investment | ||||||
3 | Corporation, assist the corporation in
performing its duties, | ||||||
4 | and
undertake such other responsibilities as are set forth in | ||||||
5 | this Act or as
may be
necessary or appropriate to give effect | ||||||
6 | to the intent and purposes of this Act.
| ||||||
7 | (c) Subject to the direction and supervision of DCEO, the | ||||||
8 | Illinois Capital
Investment Corporation shall receive | ||||||
9 | investment returns from the Illinois
Opportunity
Fund and shall | ||||||
10 | reinvest those funds in further venture capital investments
| ||||||
11 | subject to the
provisions of this Act, and shall have | ||||||
12 | responsibility for organizing and
overseeing the
management of | ||||||
13 | the Illinois Opportunity Fund, identifying and engaging a | ||||||
14 | private
fund manager or managers for the Illinois Opportunity | ||||||
15 | Fund,
and establishing investment objectives for the Illinois
| ||||||
16 | Opportunity Fund designed to create jobs and strengthen the | ||||||
17 | economy of the
State of
Illinois.
| ||||||
18 | (d) The Illinois Capital Investment Corporation shall | ||||||
19 | exercise no
governmental
functions. Without limiting the | ||||||
20 | authority of DCEO to
issue
tax credits pursuant to this Act | ||||||
21 | under certificates that are binding on DCEO
and the
Illinois | ||||||
22 | Department of Revenue, the obligations of the Illinois Capital
| ||||||
23 | Investment
Corporation are not obligations of the State or any | ||||||
24 | political subdivision of
the State
within the meaning of any | ||||||
25 | constitutional or statutory debt limitations, but are
| ||||||
26 | obligations
of the corporation payable solely and only from the | ||||||
27 | corporation's funds. The
Illinois
Capital Investment | ||||||
28 | Corporation shall itself have no authority to pledge the
credit | ||||||
29 | or
taxing power of the State or any political subdivision of | ||||||
30 | the State or make its
debts
payable out of any moneys except | ||||||
31 | those of the corporation.
| ||||||
32 | (e) The board of directors of the Illinois Capital | ||||||
33 | Investment Corporation
shall
have not less than 7 nor more than | ||||||
34 | 11 members. The Director or Acting
Director
of DCEO or his or | ||||||
35 | her designee shall be a member of the board of directors of
the | ||||||
36 | Illinois
Capital Investment Corporation. The Governor, with |
| |||||||
| |||||||
1 | the advice and consent of the Senate, shall appoint the | ||||||
2 | remaining
members of
the board of directors of the Illinois | ||||||
3 | Capital Investment Corporation and fill
any
vacancies in | ||||||
4 | consultation with DCEO and the remaining
directors.
DCEO shall | ||||||
5 | recommend to the Governor candidates for the board and shall | ||||||
6 | advise
the
Governor as to the qualifications of any other | ||||||
7 | candidates the Governor desires
to
consider. In recommending | ||||||
8 | and selecting directors, DCEO and the Governor shall
seek
to | ||||||
9 | ensure that (i) each candidate has meaningful experience | ||||||
10 | reviewing,
preparing,
analyzing, or interpreting financial | ||||||
11 | statements or has sophistication in
financial matters
| ||||||
12 | generally, has meaningful experience in the supervision or | ||||||
13 | management of
venture capital
or private equity investments, | ||||||
14 | has meaningful experience operating
or
managing investments in | ||||||
15 | businesses engaged in the industries or sectors
targeted by
| ||||||
16 | DCEO as candidates for investment by the Illinois Opportunity | ||||||
17 | Fund, or has
meaningful
experience managing or selecting | ||||||
18 | investments for institutional, seed, angel,
mezzanine, or
| ||||||
19 | community
development venture capital funds or SBIC's; (ii) the | ||||||
20 | board includes minority
and female
representatives; (iii) the | ||||||
21 | board includes representatives of geographic areas
beyond Cook
| ||||||
22 | County and the collar counties; and (iv) the board includes at | ||||||
23 | least 3
venture capital professionals. A conflict of interest | ||||||
24 | shall be deemed to exist in any contractual relationship in | ||||||
25 | which a director, officer, agent, or employee of the Board, or | ||||||
26 | any for-profit firm or corporation in which that director, | ||||||
27 | officer, agent, or employee or any member of his or her | ||||||
28 | immediate family is an officer, partner, or principal | ||||||
29 | stockholder, shall directly or indirectly buy or sell goods or | ||||||
30 | services to, or otherwise contract with the Board. Upon a | ||||||
31 | showing that a conflict of interest exists, the director, | ||||||
32 | officer, agent, or employee is subject to removal and the | ||||||
33 | contract shall be deemed unenforceable as against the Board | ||||||
34 | unless the records of the Board reflect that the director, | ||||||
35 | officer, agent, or employee fully and publicly disclosed all | ||||||
36 | such interests, and unless that contractual relationship was |
| |||||||
| |||||||
1 | secured by competitive bidding following a public invitation to | ||||||
2 | bid. If a director, officer, agent, or employee holds such an | ||||||
3 | interest, he or she shall refrain from any further official | ||||||
4 | involvement in regard to that contract or agreement, from | ||||||
5 | voting on any matter pertaining to that contract or agreement, | ||||||
6 | and from communicating with other Board members, officers, | ||||||
7 | agents, or employees concerning that contract or agreement.
| ||||||
8 | (f) In consultation with the Department, the Illinois | ||||||
9 | Capital Investment Corporation shall establish a committee and | ||||||
10 | procedures to select a private fund manager or managers for the | ||||||
11 | Illinois Opportunity Fund. The committee shall include 2 | ||||||
12 | members of the board of directors of the Illinois Capital | ||||||
13 | Investment Corporation and one public member. The public member | ||||||
14 | may not be employed or associated with the Department or the | ||||||
15 | Illinois Capital Investment Corporation.
The committee shall | ||||||
16 | receive and review applications for the position of private | ||||||
17 | fund manager. In reviewing applications, the committee shall | ||||||
18 | consider each applicant's level of experience in | ||||||
19 | institutional, seed, angel, mezzanine, or community | ||||||
20 | development venture capital or SBIC's investing, its quality of | ||||||
21 | management, its investment philosophy, its plan for | ||||||
22 | fundraising, and its prior investment fund results. Any fund | ||||||
23 | manager selected shall demonstrate substantial experience in | ||||||
24 | the design, implementation, and management of institutional, | ||||||
25 | seed, angel, mezzanine, or community development venture | ||||||
26 | capital investment programs or of SBIC's and in capital | ||||||
27 | formation. Each applicant shall submit an investment plan for | ||||||
28 | review by the Illinois Capital Investment Corporation, which | ||||||
29 | shall describe the applicant's plan for seeking investment | ||||||
30 | opportunities, evaluating and structuring investments, and | ||||||
31 | achieving the financial and policy goals of this Act. Upon | ||||||
32 | completion of this evaluation, the committee shall rank the | ||||||
33 | applicants based on their qualifications and recommend a | ||||||
34 | private fund manager or private fund managers for selection to | ||||||
35 | the board of directors of the Illinois Capital Investment | ||||||
36 | Corporation.
In consultation with the Department, the board of |
| |||||||
| |||||||
1 | directors of the Illinois Capital Investment Corporation shall | ||||||
2 | select an applicant or applicants based on the recommendations | ||||||
3 | of the committee, and shall notify the applicant or applicants | ||||||
4 | selected in writing.
| ||||||
5 | (g) The Illinois Capital Investment Corporation may charge | ||||||
6 | a fee to the
Illinois
Opportunity Fund, which shall be in | ||||||
7 | addition to any fee payable by the Illinois
Opportunity Fund to | ||||||
8 | the fund manager or managers engaged. The fee
payable
to the | ||||||
9 | Illinois Capital Investment Corporation shall be structured to | ||||||
10 | cover the
reasonable
costs of the corporation in fulfilling its | ||||||
11 | oversight functions and of DCEO in
fulfilling its
obligations | ||||||
12 | under this Section and Section 25.
| ||||||
13 | (h) Directors of the Illinois Capital Investment | ||||||
14 | Corporation shall be
compensated
for direct expenses and | ||||||
15 | mileage but shall not receive a director's fee or
salary for | ||||||
16 | their
service as directors.
| ||||||
17 | (i) The Illinois Capital Investment Corporation shall have | ||||||
18 | the power to
engage
consultants, expend funds, invest funds, | ||||||
19 | contract, bond or insure against loss,
and
perform any other | ||||||
20 | act necessary to carry out its mission.
| ||||||
21 | (j) The directors of the Illinois Capital Investment | ||||||
22 | Corporation shall adopt
bylaws,
policies, and procedures | ||||||
23 | necessary to administer the affairs of the
corporation.
| ||||||
24 | (k) Upon the dissolution of Illinois Capital Investment | ||||||
25 | Corporation, any
assets owned
by it shall thereupon be | ||||||
26 | distributed to the State of Illinois.
| ||||||
27 | (l) The meetings of the directors are subject to the | ||||||
28 | Illinois Open Meeting Act, 5 ILCS 120/. Any information | ||||||
29 | submitted to or compiled by the Illinois Capital Investment | ||||||
30 | Corporation with respect to the marketing plans, financial | ||||||
31 | statements, trade secrets, research concepts, methods or | ||||||
32 | products, or any other proprietary information of persons, | ||||||
33 | firms, associations, partnerships, agencies, corporations, or | ||||||
34 | other entities shall be confidential, except to the extent that | ||||||
35 | the person or entity that provided the information or that is | ||||||
36 | the subject of the information consents to disclosure. |
| |||||||
| |||||||
1 | Executive sessions may be held to discuss such materials if | ||||||
2 | deemed necessary by the Directors.
| ||||||
3 | Section 20. Illinois Opportunity Fund.
| ||||||
4 | (a) Following the organization of the Illinois Capital | ||||||
5 | Investment
Corporation, the
corporation shall organize the | ||||||
6 | Illinois Opportunity Fund for the purpose of
making
investments | ||||||
7 | in private institutional, seed, angel, mezzanine, or community
| ||||||
8 | development
venture
capital funds or SBIC's in a manner that is | ||||||
9 | intended to strengthen the economy
of the
State, help
business | ||||||
10 | in Illinois gain access to capital resources, help build a
| ||||||
11 | significant, permanent
resource available to serve the needs of | ||||||
12 | Illinois businesses, and accomplish
all these
benefits in a way | ||||||
13 | that minimizes the use of tax credits and provides market
rate | ||||||
14 | returns to
the Illinois Opportunity Fund. The Illinois Capital | ||||||
15 | Investment Corporation
shall organize
the Illinois Opportunity | ||||||
16 | Fund as a for profit limited partnership or limited
liability
| ||||||
17 | company under Illinois law pursuant to which the Illinois | ||||||
18 | Capital Investment
Corporation
shall be the general partner or | ||||||
19 | managing member, as the case may be.
| ||||||
20 | (b) Qualified investors shall be permitted to invest in | ||||||
21 | equity interests or
debt obligations of
the Illinois | ||||||
22 | Opportunity Fund. Such interests or obligations shall provide | ||||||
23 | for
a fixed or
variable rate of return established by the | ||||||
24 | Illinois Capital Investment
Corporation and
approved by DCEO. | ||||||
25 | DCEO may award contingent tax credits to investors in the
| ||||||
26 | Illinois
Opportunity Fund that shall be redeemable if the | ||||||
27 | Illinois Opportunity Fund
fails to
achieve results sufficient | ||||||
28 | to repay the amounts invested by such investors and
provide
| ||||||
29 | them with specified returns. Returns on investments generated | ||||||
30 | by the Illinois
Opportunity Fund in excess of amounts required | ||||||
31 | to (i) repay the amounts
invested by
investors and provide them | ||||||
32 | with specified returns, and (ii) pay all or an
agreed upon
| ||||||
33 | portion of DCEO's costs for establishing and operating | ||||||
34 | specified business
development
programs designed to promote | ||||||
35 | economic development within the State of Illinois,
including by |
| |||||||
| |||||||
1 | increasing the availability of viable investment
opportunities | ||||||
2 | and
business start-ups in all regions of the State, shall be | ||||||
3 | reinvested
by the Illinois
Opportunity Fund in investments in | ||||||
4 | private institutional, seed, angel,
mezzanine, or
community
| ||||||
5 | development venture capital funds, SBIC's, or other entities in | ||||||
6 | the manner
described in
this
Section.
| ||||||
7 | (c) The Illinois Opportunity Fund shall operate primarily | ||||||
8 | as a fund of funds
that
invests principally in high-quality | ||||||
9 | institutional, seed, angel, mezzanine, and
community
| ||||||
10 | development
venture capital funds and SBIC's that (i) maintain | ||||||
11 | a meaningful physical
presence in the
State of
Illinois, (ii) | ||||||
12 | are
managed by private investment managers who commit
that | ||||||
13 | their funds will invest not less than the amount invested with | ||||||
14 | them by the
Illinois Opportunity Fund in businesses that are | ||||||
15 | headquartered or maintain
meaningful business operations in | ||||||
16 | the State of Illinois, and (iii) meet the
investment objectives
| ||||||
17 | and criteria
established by DCEO and this Act. In establishing | ||||||
18 | these objectives and
criteria,
DCEO
shall consult with leaders | ||||||
19 | in business, science, and government to identify
strategic
| ||||||
20 | industries and sectors that offer the potential to create | ||||||
21 | high-quality and
sustainable
employment opportunities for | ||||||
22 | Illinoisans and create domestic and global markets
for the
| ||||||
23 | products and services of investee companies. In addition, in | ||||||
24 | establishing these
objectives
and criteria, DCEO shall seek to | ||||||
25 | ensure that funds will be available for
investment by the
| ||||||
26 | Illinois Opportunity Fund in seed funds, angel funds, and CDVC | ||||||
27 | or other CDFI
funds in
diverse geographies within Illinois.
| ||||||
28 | (d) The Illinois Opportunity Fund shall have the power to | ||||||
29 | engage
consultants,
expend funds, invest funds, contract, bond | ||||||
30 | or insure against loss, and perform
any other
act necessary to | ||||||
31 | carry out its mission. Without limiting the foregoing, the
| ||||||
32 | Illinois
Opportunity Fund may (i) issue debt
or equity | ||||||
33 | securities and borrow such funds as may be needed to
accomplish | ||||||
34 | its goals, (ii) open and manage bank and short-term investment
| ||||||
35 | accounts as
deemed necessary by its fund manager or managers, | ||||||
36 | and (iii) expend
funds to
secure investment ratings.
The |
| |||||||
| |||||||
1 | Illinois Opportunity Fund shall adopt investment and | ||||||
2 | diversification
policies.
| ||||||
3 | (e) The Illinois Opportunity Fund shall engage a certified | ||||||
4 | public accountant
to
conduct an annual audit of its financial | ||||||
5 | condition and results of operations.
| ||||||
6 | (f) DCEO shall provide to the Governor and the General | ||||||
7 | Assembly reports on
the performance of the Illinois Opportunity | ||||||
8 | Fund and other pertinent
information concerning the Illinois | ||||||
9 | Opportunity Fund and the Illinois Capital
Investment | ||||||
10 | Corporation, except for trade secrets and commercial or | ||||||
11 | financial
information obtained from a
person or business if the | ||||||
12 | information is proprietary, privileged, or
confidential or if | ||||||
13 | disclosure may cause competitive harm or could reasonably be
| ||||||
14 | expected to produce private gain or public loss.
| ||||||
15 | (g) Fifty years after the formation of the Illinois | ||||||
16 | Opportunity Fund, it
shall be
liquidated and its assets shall | ||||||
17 | be distributed in accordance with law.
| ||||||
18 | Section 25. Contingent tax credits.
| ||||||
19 | (a) The State of Illinois hereby allows an aggregate of | ||||||
20 | $200,000,000 of
contingent
tax credits, which may be allocated | ||||||
21 | and issued by DCEO to qualified investors
in the
Illinois | ||||||
22 | Opportunity Fund. DCEO shall not be obligated to issue | ||||||
23 | certificates
equal to
the full aggregate amount allowed by the | ||||||
24 | State of Illinois, and it may elect to
suspend or
terminate the | ||||||
25 | issuance of certificates at any time if it does not believe | ||||||
26 | that
the continued
issuance of certificates will assist the | ||||||
27 | State of Illinois in meeting the
objectives of this
Act. Tax | ||||||
28 | credits may be redeemed in any year redemption is permitted to | ||||||
29 | the
extent the
Illinois Opportunity Fund is unable to make | ||||||
30 | required repayments to its
investors of the
amounts invested by | ||||||
31 | them and provide them with specified fixed or variable rate
| ||||||
32 | returns.
Tax credits shall be redeemable not earlier than | ||||||
33 | January 1, 2010 nor later than
December 31, 2033
as may be | ||||||
34 | specified in any certificate.
| ||||||
35 | (b) DCEO shall determine the amount of tax credits to be |
| |||||||
| |||||||
1 | allowed to
investors
in
the Illinois Opportunity Fund and the | ||||||
2 | years those tax credits may first be
redeemed.
The aggregate | ||||||
3 | redemptions of tax credits issued by DCEO, however, shall
not
| ||||||
4 | exceed $40,000,000 in any fiscal year of the State of Illinois.
| ||||||
5 | (c) All tax credits shall be evidenced by certificates. | ||||||
6 | DCEO shall establish
and
set forth in each certificate all | ||||||
7 | terms and conditions under
which tax
credits may be redeemed. | ||||||
8 | In establishing the terms of any tax credits and
issuing
| ||||||
9 | certificates, DCEO shall seek to promote the purposes of this | ||||||
10 | Act. Tax credits
may not
be redeemed except in accordance with | ||||||
11 | the terms of the certificate under which
they
have been issued. | ||||||
12 | The certificates shall, upon proper issuance to investors in
| ||||||
13 | the Illinois
Opportunity Fund, be binding on DCEO and the | ||||||
14 | Illinois Department of Revenue.
| ||||||
15 | (d) Tax credits issued pursuant to this Section shall be | ||||||
16 | freely transferable
by their
holders. DCEO shall, in | ||||||
17 | conjunction with the Illinois Department of
Revenue,
develop a | ||||||
18 | system for registration of any tax credits allowed or | ||||||
19 | transferred
pursuant to this
Act that permits verification that | ||||||
20 | any tax credit claimed upon a tax return is
valid and
properly | ||||||
21 | taken in the year of claim, and that any transfers of the tax | ||||||
22 | credit
are made in
accordance with the requirements of this | ||||||
23 | Act.
| ||||||
24 | (e) Tax credits allowed or transferred pursuant to this Act | ||||||
25 | shall not be
considered
securities under any Illinois law | ||||||
26 | relating to securities.
| ||||||
27 | Section 30. Powers and effectiveness. Nothing contained in | ||||||
28 | this Act is or
shall be
construed as a restriction or | ||||||
29 | limitation upon any powers that DCEO might
otherwise have
under | ||||||
30 | any other law of this State, and the provisions of this Act are
| ||||||
31 | cumulative to those
powers. The provisions of this Act do and | ||||||
32 | shall be construed to provide a
complete,
additional, and | ||||||
33 | alternative method for the doing of the things authorized and
| ||||||
34 | shall be
regarded as supplemental and additional to powers | ||||||
35 | conferred by any other laws.
|
| |||||||
| |||||||
1 | Section 35. Acceptable investments. Investments by | ||||||
2 | designated investors in
the
Illinois Opportunity Fund shall be | ||||||
3 | deemed permissible investments for State
chartered
banks and | ||||||
4 | for domestic insurance companies under the appropriate laws of | ||||||
5 | the
State of
Illinois.
| ||||||
6 | Section 40. Business development grants. DCEO may | ||||||
7 | establish a business
planning and development assistance grant | ||||||
8 | program to provide grant funds to
help entrepreneurs with | ||||||
9 | business creation and expansion or related activities,
subject | ||||||
10 | to appropriation.
| ||||||
11 | Section 45. Illinois Opportunity Special Projects Fund. | ||||||
12 | The Illinois
Opportunity Special Projects Fund is created as a | ||||||
13 | special fund in the State
treasury. DCEO may accept | ||||||
14 | disbursements from the Illinois Opportunity Fund for
deposit | ||||||
15 | into the Illinois Opportunity Special Projects Fund and
expend | ||||||
16 | those funds for the purposes set forth in Sections 15(g) and | ||||||
17 | 20(b) of
this Act, subject to appropriation.
| ||||||
18 | Section 95. The Illinois State Auditing Act is amended by | ||||||
19 | changing Section 3-1 as follows:
| ||||||
20 | (30 ILCS 5/3-1) (from Ch. 15, par. 303-1)
| ||||||
21 | Sec. 3-1. Jurisdiction of Auditor General. The Auditor | ||||||
22 | General has
jurisdiction over all State agencies to make post | ||||||
23 | audits and investigations
authorized by or under this Act or | ||||||
24 | the Constitution.
| ||||||
25 | The Auditor General has jurisdiction over local government | ||||||
26 | agencies
and private agencies only:
| ||||||
27 | (a) to make such post audits authorized by or under | ||||||
28 | this Act as are
necessary and incidental to a post audit of | ||||||
29 | a State agency or of a
program administered by a State | ||||||
30 | agency involving public funds of the
State, but this | ||||||
31 | jurisdiction does not include any authority to review
local |
| |||||||
| |||||||
1 | governmental agencies in the obligation, receipt, | ||||||
2 | expenditure or
use of public funds of the State that are | ||||||
3 | granted without limitation or
condition imposed by law, | ||||||
4 | other than the general limitation that such
funds be used | ||||||
5 | for public purposes;
| ||||||
6 | (b) to make investigations authorized by or under this | ||||||
7 | Act or the
Constitution; and
| ||||||
8 | (c) to make audits of the records of local government | ||||||
9 | agencies to verify
actual costs of state-mandated programs | ||||||
10 | when directed to do so by the
Legislative Audit Commission | ||||||
11 | at the request of the State Board of Appeals
under the | ||||||
12 | State Mandates Act.
| ||||||
13 | In addition to the foregoing, the Auditor General may | ||||||
14 | conduct an
audit of the Metropolitan Pier and Exposition | ||||||
15 | Authority, the
Regional Transportation Authority, the Suburban | ||||||
16 | Bus Division, the Commuter
Rail Division and the Chicago | ||||||
17 | Transit Authority and any other subsidized
carrier when | ||||||
18 | authorized by the Legislative Audit Commission. Such audit
may | ||||||
19 | be a financial, management or program audit, or any combination | ||||||
20 | thereof.
| ||||||
21 | The audit shall determine whether they are operating in | ||||||
22 | accordance with
all applicable laws and regulations. Subject to | ||||||
23 | the limitations of this
Act, the Legislative Audit Commission | ||||||
24 | may by resolution specify additional
determinations to be | ||||||
25 | included in the scope of the audit.
| ||||||
26 | In addition to the foregoing, the Auditor General must also | ||||||
27 | conduct a
financial audit of
the Illinois Sports Facilities | ||||||
28 | Authority's expenditures of public funds in
connection with the | ||||||
29 | reconstruction, renovation, remodeling, extension, or
| ||||||
30 | improvement of all or substantially all of any existing | ||||||
31 | "facility", as that
term is defined in the Illinois Sports | ||||||
32 | Facilities Authority Act.
| ||||||
33 | The Auditor General may also conduct an audit, when | ||||||
34 | authorized by
the Legislative Audit Commission, of any hospital | ||||||
35 | which receives 10% or
more of its gross revenues from payments | ||||||
36 | from the State of Illinois,
Department of Public Aid, Medical |
| |||||||
| |||||||
1 | Assistance Program.
| ||||||
2 | The Auditor General is authorized to conduct financial and | ||||||
3 | compliance
audits of the Illinois Distance Learning Foundation | ||||||
4 | and the Illinois
Conservation Foundation.
| ||||||
5 | As soon as practical after the effective date of this | ||||||
6 | amendatory Act of
1995, the Auditor General shall conduct a | ||||||
7 | compliance and management audit of
the City of
Chicago and any | ||||||
8 | other entity with regard to the operation of Chicago O'Hare
| ||||||
9 | International Airport, Chicago Midway Airport and Merrill C. | ||||||
10 | Meigs Field. The
audit shall include, but not be limited to, an | ||||||
11 | examination of revenues,
expenses, and transfers of funds; | ||||||
12 | purchasing and contracting policies and
practices; staffing | ||||||
13 | levels; and hiring practices and procedures. When
completed, | ||||||
14 | the audit required by this paragraph shall be distributed in
| ||||||
15 | accordance with Section 3-14.
| ||||||
16 | The Auditor General shall conduct a financial and | ||||||
17 | compliance and program
audit of distributions from the | ||||||
18 | Municipal Economic Development Fund
during the immediately | ||||||
19 | preceding calendar year pursuant to Section 8-403.1 of
the | ||||||
20 | Public Utilities Act at no cost to the city, village, or | ||||||
21 | incorporated town
that received the distributions.
| ||||||
22 | The Auditor General must conduct an audit of the Health | ||||||
23 | Facilities Planning
Board pursuant to Section 19.5 of the | ||||||
24 | Illinois Health Facilities Planning
Act.
| ||||||
25 | The Auditor General of the State of Illinois shall annually | ||||||
26 | conduct or
cause to be conducted a financial and compliance | ||||||
27 | audit of the books and records
of any county water commission | ||||||
28 | organized pursuant to the Water Commission Act
of 1985 and | ||||||
29 | shall file a copy of the report of that audit with the Governor | ||||||
30 | and
the Legislative Audit Commission. The filed audit shall be | ||||||
31 | open to the public
for inspection. The cost of the audit shall | ||||||
32 | be charged to the county water
commission in accordance with | ||||||
33 | Section 6z-27 of the State Finance Act. The
county water | ||||||
34 | commission shall make available to the Auditor General its | ||||||
35 | books
and records and any other documentation, whether in the | ||||||
36 | possession of its
trustees or other parties, necessary to |
| |||||||
| |||||||
1 | conduct the audit required. These
audit requirements apply only | ||||||
2 | through July 1, 2007.
| ||||||
3 | The Auditor General must conduct audits of the Rend Lake | ||||||
4 | Conservancy
District as provided in Section 25.5 of the River | ||||||
5 | Conservancy Districts Act.
| ||||||
6 | The Auditor General is authorized to conduct financial and | ||||||
7 | compliance audits of the Illinois Capital Investment | ||||||
8 | Corporation and the Illinois Opportunity Fund.
| ||||||
9 | (Source: P.A. 93-226, eff. 7-22-03; 93-259, eff. 7-22-03; | ||||||
10 | 93-275, eff.
7-22-03; revised 8-25-03.)
| ||||||
11 | Section 96. The State Finance Act is amended by adding | ||||||
12 | Section 5.625 as
follows:
| ||||||
13 | (30 ILCS 105/5.625 new)
| ||||||
14 | Sec. 5.625. The Illinois Opportunity Special Projects | ||||||
15 | Fund.
| ||||||
16 | Section 99. This Act takes effect upon becoming law.
|